On December 24, 2024, the Bank of Ghana (BoG) announced the launch of a US$120 million forex auction aimed at stabilizing fuel supply in the country. This initiative specifically targets Bulk Oil Distribution Companies (BDCs) and is designed to ensure predictable access to foreign currency for importing refined petroleum products. The auctions will take place bi-weekly during the first quarter of 2025, with $20 million being released at each of the six scheduled events [6fa2630e].
This strategic move by the BoG comes in response to increasing foreign exchange demand pressures and aims to mitigate fuel price fluctuations for consumers. By stabilizing the cedi, the central bank hopes to prevent disruptions in the fuel market and avoid significant price hikes that could impact the economy [6fa2630e].
The announcement of the forex auction aligns with broader efforts across the region to manage fuel supply and pricing amid ongoing economic challenges. In neighboring Kenya, the government recently exited an oil import deal due to distortions in the forex market, which had resulted in significant taxpayer losses [01fcac59]. This situation highlights the critical role that effective forex management plays in maintaining economic stability in both countries.
As Ghana prepares for its forex auctions, market participants are keenly observing how these measures will influence fuel availability and pricing dynamics in the coming months. The BoG's proactive approach is expected to bolster confidence among BDCs and consumers alike, ensuring a more stable fuel supply [6fa2630e].